Broker Check

2024 Market Outlook

2024 Annual Market Outlook:


Cetera released its Annual Market outlook:  The Fed: From Foe to Friend, 

Recession risks entering 2024 haven’t disappeared. Although economic data is improving off its lows, the risk of recession is still elevated. Volatility could also increase as we enter an election year and geopolitical unrest remains in Europe, Asia, and the Middle East. Additionally, an economic slowdown could be prolonged and even deepen if the Federal Reserve (Fed) is slow to cut interest rates when inflation is under control. While mistakes are possible, it is more likely the Fed will end up being a friend in 2024 and, if an economic slowdown materializes, they would likely cut rates which should act as a backstop for markets. The general sentiment is anticipatory of rate cuts, including the Fed’s own dot plot which projects a lower federal funds rate by the end of next year. While our Outlooks typically cover what we expect in the coming quarter or year, investing is typically done with a longer horizon in mind. The good news is the stage is currently set for long-term growth. That growth may not happen for a couple of years, but in the interim we may see certain themes develop. Timing these developments can be difficult: there can be setbacks along the way, and sometimes they develop so slowly you don’t necessarily notice them until it’s too late.

 

2024 Annual Outlook